Forum highlights AI being pushed into daily life SEOUL, May 15 (AJP) - South Korea is rapidly integrating artificial intelligence into everyday life, marking a shift from early-stage development to practical applications, industry leaders said at a technology forum in Seoul on Thursday. At the 3rd Mega AI Forum, held at the Korea Exchange building in Yeouido, Seoul, government officials and corporate executives convened to examine the growing role of software robots and agent AI in society. The event was hosted by Aju Business Daily under the theme, “SW Robots: Breathing Life into Agent AI.” Speakers emphasized that AI is evolving beyond technical innovation, taking on increasingly personal and emotional roles in users' lives. “AI technology development extends beyond mere technical advancement,” said Lim Gyu-jin, chief executive of Aju Business Daily, in his opening remarks. “It has the power to amplify human creativity and productivity while redefining daily routines and societal values.” Among the prominent attendees were former Minister of Science and ICT Lee Jong-ho, Democratic Party lawmaker Shin Jeong-hoon, and Choi Hyung-du of the ruling People Power Party. Second Vice Minister of Science and ICT Kang Do-hyun also delivered remarks, urging all sectors to embrace AI’s transformative potential. “We have entered an era that demands complete transformation,” Kang said. “I hope all sectors will rise to the challenge, with South Korea continuing to lead in the global AI industry.” In a keynote address, Lee Se-young, chief executive of Wrtn Technologies, described agent AI as “all methods and means by which humanity utilizes AI.” He predicted a future where personalized AI assistants will engage in emotional exchanges and support individual decision-making. Executives from Kakao Mobility, SK Telecom, and Krafton presented their latest AI-driven services. Chang Sung-wook, senior vice president at Kakao Mobility, projected a convergence of agent AI with physical AI in areas such as autonomous driving and robotics. Yoon Hyun-sang, vice president of SK Telecom’s AI business division, said that future business models will be driven by AI that adapts to users, rather than requiring users to adapt to the technology. Meanwhile, Sung June-sig, head of Krafton’s applied deep learning department, unveiled generative AI tools currently being deployed in the company’s early-access simulation game inZoi. The forum concluded with a panel discussion titled “Korean Agent AI and Physical AI,” moderated by former Minister Lee. Participants included Seoul National University professor Yoon Sung-roh, KAIST professor Choi Jae-sik, Saltlux CEO Lee Kyung-il, and Wrtn Technologies co-founder Kim Tae-ho. The panelists addressed critical issues such as data privacy in AI training, the transition from virtual to physical AI, and the role of government in fostering innovation. 2025-05-15 17:49:04

Hyundai Motor to build first Middle East factory, eyes Saudi as regional hub SEOUL, May 15 (AJP) - Hyundai Motor has begun construction on its first automobile manufacturing plant in the Middle East, part of a strategic push to establish Saudi Arabia as a central base for regional operations. The facility, named Hyundai Motor Manufacturing Middle East, is being built in King Abdullah City, within the King Salman Automotive Cluster. Groundbreaking took place Wednesday, with the start of production scheduled for the fourth quarter of 2026. The plant is a joint venture between Hyundai Motor, which holds a 30 percent stake, and Saudi Arabia’s powerful Public Investment Fund, which controls the remaining 70 percent. The move signals Hyundai’s ambition to deepen its presence in the region, where vehicle sales are expected to exceed 3 million annually by 2030. Last year, Hyundai sold 840,000 vehicles in Saudi Arabia alone, which represented roughly 34 percent of the Middle Eastern market. “With this factory, we are driving change forward and paving the way for a new industrial future in the region,” said Park Wong-yun, vice president and CEO of the joint venture, in remarks at the ceremony. “The facility will become a platform for growth and industrial excellence in the heart of the kingdom.” The plant will have the capacity to produce 50,000 vehicles per year and will manufacture both internal combustion engine and electric models. Hyundai officials said the initiative aligns with the goals of Saudi Arabia’s Vision 2030 — a sweeping plan to reduce the kingdom’s reliance on fossil fuels and diversify its economy through industrial development and sustainability. As part of that effort, Saudi Arabia aims to produce 500,000 electric vehicles annually by 2030 and convert more than 30 percent of the vehicles in its capital, Riyadh, to electric. The broader Gulf region has also shown momentum in EV adoption. Qatar has set a goal of 10 percent EV usage by 2030, and the United Arab Emirates saw electric vehicle imports rise from $100 million in 2019 to $1.39 billion in 2022, a 14-fold increase. The expansion comes amid renewed diplomatic and commercial engagement between the United States and key Gulf states. U.S. President Donald Trump — on his first overseas trip since returning to office — arrived in the region this week, with stops in Saudi Arabia, Qatar, and the UAE. 2025-05-15 13:44:40

Container ship orders surge, defying global shipping slowdown SEOUL, May 14 (AJP) - Global orders for container ships surged in early 2025, defying broader trends in the maritime industry and signaling a shift driven by environmental regulations and geopolitical trade tensions. As of the first week of May, new container ship orders reached approximately 1.65 million twenty-foot equivalent units (TEUs), nearly equaling the 20-year annual average of 1.71 million TEUs, according to industry data released Wednesday. That figure represents a 285 percent increase from the same period last year. The surge stands in contrast to the rest of the shipbuilding sector. Overall global vessel orders dropped nearly 50 percent year-on-year to 12.59 million compensated gross tons (CGT), a standard measure that adjusts for ship complexity and labor intensity. Analysts and industry observers had expected a slowdown in container ship demand, particularly as new vessels ordered during the pandemic began entering service. Compounding the skepticism were forecasts of weakening global trade amid revived protectionist policies under U.S. President Donald Trump. In January, the Export-Import Bank of Korea projected a 32 percent decline in overall shipbuilding orders for the year, citing diminished demand for both LNG carriers and container ships. But the recent uptick suggests a more complex picture. “Despite massive supply of container vessels already entering the market with more to come, shipowners continue purchasing container ships,” said Han Young-soo, an analyst at Samsung Securities. “This can be explained by replacement demand to comply with environmental regulations.” The International Maritime Organization in April approved new measures to regulate greenhouse gas emissions for ships over 5,000 tons starting in 2027. Penalties for excess emissions will range from $100 to $380 per ton, prompting shipping companies to replace older fleets with more energy-efficient models. Flush with cash from elevated freight rates during last year’s crisis in the Red Sea — disruptions caused by the Israel–Hamas war — container carriers are accelerating the transition to low-emission vessels. The demand has been particularly robust for feeder container ships, smaller vessels typically under 3,000 TEU used on regional routes. South Korea’s HD Hyundai Mipo has secured contracts for 16 of the 33 feeder ships ordered globally this year, making it the market leader in that category. South Korean shipbuilders are also poised to benefit from geopolitical headwinds. The Trump administration has announced a new tariff targeting Chinese-built and Chinese-flagged ships, imposing a $50 per ton levy on vessels docking at U.S. ports starting in October. That figure is set to rise to $140 per ton by 2028. 2025-05-14 15:29:37

Presidential candidates embrace cryptocurrency as major campaign issue SEOUL, May 14 (AJP) - Cryptocurrency has emerged as a central campaign issue, with major presidential candidates pledging sweeping regulatory reforms — including the approval of spot cryptocurrency exchange-traded funds (ETFs) — ahead of the June 3 election. Lee Jae-myung of the liberal Democratic Party and Kim Moon-soo of the conservative People Power Party have each unveiled ambitious digital asset agendas aimed at expanding access to crypto markets and integrating them more closely into the financial mainstream. Their proposals reflect a broader surge in domestic interest in digital assets, as well as international momentum driven by U.S. policy shifts under the Trump administration. “We will help young people build assets,” Lee wrote in a May 6 Facebook post, outlining plans to legalize spot crypto ETFs and introduce an integrated oversight system for the digital asset market. Kim, for his part, has included ETF approval in a broader initiative to bolster middle-class wealth, listing it as the fifth of his 10 core campaign pledges. He has also floated the possibility of permitting government entities to invest in digital assets — an idea likely to stir debate among more conservative financial policymakers. Financial authorities in South Korea have taken a cautious approach to cryptocurrency, citing concerns about volatility and systemic risk. However, the administration and ruling party agreed in March to consider allowing spot ETFs, signaling a possible shift in the regulatory landscape. Analysts say the move could democratize access to cryptocurrency investment, enabling individuals to trade digital assets through traditional brokerage accounts without the need for dedicated crypto wallets or direct exchange involvement. Within Lee’s campaign, a newly formed Digital Asset Committee met for the first time Tuesday to begin crafting a comprehensive regulatory framework. Topics under review include the treatment of stablecoins, non-fungible tokens (NFTs), and security token offerings (STOs). Kim’s party unveiled its own seven-point crypto platform last month, which proposes dismantling the longstanding “one exchange, one bank” policy and establishing clearer legal parameters for business engagement in the digital asset space. Yet the candidates part ways on the question of won-backed stablecoins. Lee supports their creation as a tool to curb capital outflows, a position criticized by Lee Jun-seok of the minor Reform Party, who dismissed the idea as indicative of “a lack of understanding of market realities.” 2025-05-14 11:06:15

South Korea's AI-generated games face regulatory hurdles SEOUL, May 13 (AJP) - South Korea’s game industry is bracing for heightened regulatory oversight as lawmakers confirm that video games utilizing artificial intelligence will fall under the country’s new Artificial Intelligence Basic Law, set to take effect in January 2026. According to a report released Tuesday by the National Assembly Research Service, games that employ generative AI models are likely to be classified as “AI products,” placing them under a regulatory framework that includes strict disclosure requirements and risk assessments overseen by the Ministry of Science and ICT. The AI Basic Law, enacted earlier this year, requires companies to clearly indicate when AI-generated content is used in their products and to conduct comprehensive evaluations of potential risks. These must be formally submitted to government authorities. Parliamentary researchers concluded that AI-powered non-player characters (NPCs) with natural language capabilities, as well as games with in-game tools that generate content, would fall squarely within the law’s purview. Among the most prominent titles potentially affected is inZOI, a forthcoming life simulation game from Krafton that is currently in early access. The game features AI-generated 3D printing, text-to-image functionality, and video-to-motion tools. Planned integration of natural language processing would likely trigger additional compliance obligations. Even games that utilize AI-generated visuals, music, or graphics during development — regardless of subsequent human modification — could be subject to the law’s provisions. “Even if generative AI results underwent human revision or editing before being used in games, companies would still need to fulfill their obligations under the AI Basic Law if their game qualifies as an ‘AI product,’” the research service noted. The legislation mandates that companies clearly label AI-generated material that could be mistaken for human-created content. This includes visual imagery, audio, and video — core elements in modern game development. The use of widely available tools such as Stable Diffusion, Midjourney, or ElevenLabs’ synthetic voices would likely require additional disclosures, potentially impacting a significant portion of South Korea’s $17 billion gaming sector. The guidance has sparked concerns across the broader creative industry, echoing apprehensions from film, television, and digital content producers who argue that the regulations could hinder South Korea’s competitive edge in global entertainment markets. “As AI rapidly transforms gaming, blurring traditional creative boundaries, we urgently need balanced policies that protect rights while fostering industrial growth,” said Kang Yu-jung, a lawmaker with the opposition Democratic Party. 2025-05-13 14:05:22

Korea, Malaysia resume FTA talks to close gap in key areas SEOUL, May 13 (AJP) - South Korea and Malaysia are set to resume negotiations this week in Kuala Lumpur as the two nations seek to advance their bilateral free trade agreement. The talks, scheduled from Tuesday through Thursday, mark the sixth round of negotiations since the process resumed in March 2024. The South Korean delegation is headed by Kwon Hye-jin, the country’s chief trade negotiator from the Ministry of Trade, Industry and Energy. Malaysia’s team is led by Sumadi Balakrishnan, senior director at the Ministry of Investment, Trade and Industry. Officials from both sides say momentum has been building. Since last August, the two countries have held five formal rounds and several intersessional meetings, culminating in a significant breakthrough last month. The April 8–11 talks closed gaps in 10 key areas, including goods and services trade as well as broader economic cooperation. This week’s discussions will focus on eight major topics, notably rules of origin, while revisiting earlier negotiations on trade in goods and services. Both nations have now tabled their respective offer lists, laying the groundwork for more detailed bargaining. The stakes are high for South Korea, which is seeking to strengthen its foothold in Southeast Asia amid shifting trade dynamics in the region. While April exports to ASEAN countries totaled $94.4 billion — just $14.4 billion shy of exports to China — South Korea’s shipments to ASEAN outpaced those to China in February and March. “Establishing a bilateral FTA with Malaysia, a promising market within ASEAN, will significantly enhance our companies’ global competitiveness and help mitigate uncertainty,” Kwon said in a statement. 2025-05-13 10:40:08

US, China agree to roll back tariffs, pause trade war SEOUL, May 12 (AJP) - The United States and China announced Monday that they had reached a preliminary agreement to reduce and temporarily suspend a series of reciprocal tariffs, marking a significant step toward de-escalating a trade conflict that has rattled global markets for weeks. Following a weekend of closed-door negotiations in Geneva, U.S. Treasury Secretary Scott Bessent said the two countries had agreed to a 90-day pause on implementing new tariffs, with both sides committing to reduce existing levies by a combined 115 percentage points. “We had very productive talks, and I believe the venue — here in Lake Geneva — added great equanimity to what was a very positive process,” Bessent told reporters. Chinese Vice Premier He Lifeng, who led Beijing’s delegation, described the discussions as “in-depth” and “candid.” Under the terms of the agreement, U.S. tariffs on Chinese imports will be reduced to 30 percent from the current 145 percent. In turn, China will lower its tariffs on American goods to 10 percent. In a statement released by China's Commerce Ministry, officials said both sides were committed to taking coordinated steps to implement the agreement. The ministry also indicated that China would suspend or remove certain non-tariff retaliatory measures imposed on the U.S. since April 2. The latest talks marked the first high-level, in-person negotiations on trade between the two countries since U.S. President Donald Trump returned to the White House and revived his aggressive trade agenda. The Trump administration has blamed China for what it describes as decades of unfair trade practices and, earlier this year, imposed sweeping tariffs that reignited tensions between the world’s two largest economies. While Monday’s announcement offers a temporary reprieve for businesses and investors, analysts cautioned that a 90-day window may be too short to resolve deeper structural disagreements. Still, the move was welcomed by markets, with major indices in Asia and Europe climbing on hopes of a thaw in bilateral trade relations. 2025-05-12 17:16:34

OECD warns of slowing growth in South Korea SEOUL, May 12 (AJP) - South Korea’s potential economic growth is projected to dip below 2 percent next year, according to the Organisation for Economic Cooperation and Development, raising fresh concerns about the long-term health of Asia’s fourth-largest economy. The OECD forecast South Korea’s potential GDP growth rate at 1.98 percent for 2026 — a slight but symbolic decline from this year’s estimate of 2.02 percent. The revision reflects a broader and more worrisome trend as the country’s growth ceiling has steadily eroded. Over the 10-year period from 2017 to 2026, South Korea’s potential growth rate is expected to fall by 1.02 percentage points, the seventh-steepest drop among the 37 OECD member countries. The weakening outlook aligns with estimates from major domestic institutions. The National Assembly Budget Office has projected potential growth at 1.9 percent for 2025, while the Korea Development Institute places it even lower, at 1.5 percent. Potential GDP refers to the maximum level of output an economy can sustain without igniting inflation. While less visible than headline growth figures, the metric serves as a crucial gauge of economic vitality — and the direction is now clearly downward. South Korea's short-term performance has also lagged. The country posted the slowest GDP growth among 19 major OECD economies in the first quarter of 2025, contracting by 0.25 percent, the Bank of Korea reported on May 11. Much of the decline is being attributed to demographic headwinds. In a March report, the OECD highlighted South Korea’s collapsing fertility rate as a structural risk, warning that a shrinking workforce and a rapidly aging population could hamper efforts to sustain living standards. “The impact of a one-percentage-point decline in potential growth may be more severe for advanced economies than for emerging ones,” said Kim Kwang-seok, head of economic research at the Institute for Korean Economy & Industry. 2025-05-12 10:57:34

K-pop festival in Japan becomes business platform for Korean firms SEOUL, May 12 (AJP) - South Korean companies secured export agreements valued at $9.76 million during business matchmaking sessions held alongside a major K-pop festival in Japan, the Korea Trade-Investment Promotion Agency (KOTRA) said Monday. The business-to-business consultations, organized by KOTRA, took place on May 8 at the Tokyo International Forum, coinciding with KCON Japan, an annual K-pop showcase hosted by entertainment conglomerate CJ ENM. The three-day event featured performances by 33 artist teams, including girl groups QWER, Kep1er, and Rescene. Forty small and medium-sized enterprises from South Korea — specializing in beauty products, food, and fashion accessories — engaged in 351 tailored meetings with 82 Japanese buyers, the agency said. The promotional effort included a joint exhibition space curated with Powder Room, a prominent Korean beauty platform, which drew foot traffic through interactive events and brand demonstrations. Korean beauty brands, including Dr. AG, All My Things, and Nudique, saw heightened interest from Japanese buyers, with several companies reporting fully booked consultation schedules ahead of the event. “The Korean Wave has evolved beyond a cultural trend into a vehicle for export growth,” said Park Yong-min, director of KOTRA’s Japan regional office. “We will continue to support Korean SMEs in entering the Japanese market and building sustainable partnerships.” 2025-05-12 10:51:10

Kim Moon-soo secures candidacy after failed ouster attempt SEOUL, May 11 (AJP) - A last-ditch effort by the ruling conservative People Power Party (PPP) to replace its presidential nominee has ended in turmoil, exposing deep fractures within the party just ahead of the registration deadline. The party leadership’s attempt to replace Kim Moon-soo, the candidate who won the party’s primary, with former Prime Minister Han Duck-soo unraveled within 24 hours following fierce internal opposition and a narrow defeat in a party-wide vote. Kim is now expected to be officially registered as the party’s presidential candidate on Sunday. The drama began on the night of May 9, when party leaders — frustrated by Kim’s refusal to unify candidacies ahead of the May 11 deadline — moved to strip him of his nominee status. Kim had proposed a public opinion poll between May 15 and 16 as a method for candidate unification, but the leadership rejected this idea. In a series of emergency meetings held at midnight, the party’s interim leadership and Election Commission voted to revoke Kim’s candidacy and replace him with Han. At 3:30 a.m. on May 10, Han formally joined the party as a full member and submitted his registration paperwork. By 4 a.m., he stood as the sole registered candidate, and Kim was effectively disqualified. The party leadership, seeking legitimacy for the controversial move, held a vote of party members throughout the day on May 10. The vote lasted 11 hours, from 10 a.m. to 9 p.m. In an emergency press conference, Kim denounced the leadership’s actions as illegal and anti-democratic. “The party's leadership unlawfully stripped me of my candidacy, despite my legitimate selection by party members and the public,” he said. He also filed for an injunction with the Seoul Southern District Court to halt the disqualification, telling the court that the party “revoked my nomination in the dead of night without informing me, and chose another candidate behind closed doors.” The party’s interim leader, Kwon Young-se, defended the decision in a separate press conference, saying, “It was a painful but necessary step.” He accused Kim of repeatedly making “groundless accusations” that had sown division within the party. Several figures who had competed in the primary, as well as some lawmakers expressed outrage. Han Dong-hoon, a former justice minister who was defeated in the party primary, likened the move to autocratic behavior, saying, “Even North Korea wouldn’t do this.” Veteran lawmaker Hong Joon-pyo launched a blistering attack on Kwon and PPP floor leader Kwon Seong-dong. Another candidate, Ahn Cheol-soo, called the situation a “political farce,” while lawmaker Na Kyung-won wrote on social media, “This is not the PPP I know.” At 7 p.m., the two camps attempted another round of negotiations. Kim’s side proposed a compromise involving a 100-percent public opinion poll, with limited safeguards against strategic voting. Han’s team, however, insisted on a full party vote using the K-Voting system, a digital voting mechanism. The talks collapsed after just 40 minutes. By 11 p.m., the party’s interim leadership announced the results of the vote: a narrow majority of party members opposed the candidate replacement. Kim’s candidacy was reinstated. In a final act of contrition, the interim leader Kwon offered his resignation. “It is deeply regrettable that unification was not achieved,” he said. “That failure is mine alone. I take full responsibility and will step down.” Kim is now expected to formally register his candidacy with the National Election Commission on Sunday. 2025-05-11 09:40:49